BlackRock beats earnings as Bitcoin loses its spot at the top of clients’ wish lists

BlackRock (NYSE: BLK) shares closed 7% higher Wednesday after second-quarter earnings beat forecasts, even as clients pulled cash from its crypto funds.

The company ended June with $15.34 trillion under management, up 22% from $12.53 trillion a year earlier. Average assets rose 24% to $14.85 trillion, and net inflows reached $191.7 billion, versus $67.7 billion last year.

Over the past 12 months, BlackRock collected $868 billion and posted 10% organic base-fee growth. First-half inflows hit $321 billion, including $192 billion in Q2. ETFs, private markets, active bonds, and systematic equity products received most of that cash. Digital asset products lost $3.1 billion instead.

Clients send more cash into ETFs and bonds while BlackRock raises earnings

Revenue climbed 31% to $7.08 billion from $5.42 billion. Market gains, organic fees, charges tied to the HPS transaction, performance fees, and technology income contributed. Technology services and subscriptions grew 13%, supported by Aladdin and product packages.

GAAP operating income rose 42% to $2.46 billion. The operating margin increased to 34.7% from 31.9%. Net income reached $1.91 billion, up 20%, while diluted earnings per share rose to $12.19 from $10.19. Lower nonoperating income and a 5% increase in diluted shares limited the gain.

Adjusted operating income totaled $2.92 billion, up 39%. Adjusted net income rose 22% to $2.29 billion. Adjusted earnings per share reached $13.91, above the $12.66 forecast and 15% higher year over year. The adjusted margin was 45.9%, compared with 43.3%.

The Americas supplied $152 billion of long-term inflows. Europe, the Middle East, and Africa added $55 billion. Asia-Pacific lost $8 billion. Retail clients added $18.9 billion, split between $13 billion in the United States and $6 billion internationally.

ETFs received $177.9 billion. Core equity funds added $85 billion, fixed-income funds $61 billion, active ETFs $20 billion, and precision products $15 billion. Institutional active funds gained $43.8 billion, while institutional index accounts lost $41.5 billion, leaving $2.3 billion in net institutional inflows.

Equity products took in $71.6 billion and held $8.89 trillion. Fixed income received $92.1 billion and held $3.39 trillion. Multi-asset funds added $16.8 billion, reaching $1.35 trillion. Private markets collected $15.4 billion, while liquid alternatives received $6.6 billion. Together, alternatives held $449.4 billion and produced $851 million in base fees.

Active products added $53.3 billion and held $3.67 trillion. Non-ETF index products lost $32.1 billion but still held $4.36 trillion. Cash management lost $7.4 billion, ending with $1.07 trillion. Currency and commodity products lost $254 million and held $151.8 billion.

Falling Bitcoin prices cut BlackRock’s crypto assets and fee income

BlackRock’s digital asset holdings fell from $60.7 billion in April to $48.8 billion in June. Withdrawals removed $3.1 billion, while falling prices erased $8.7 billion. Crypto assets dropped almost 20% during the quarter as total assets grew 10%.

A year earlier, digital asset holdings stood at $79.6 billion. They have since fallen 39%. Clients added $15.1 billion over those 12 months, but market losses totaled $45.8 billion. Digital asset flows turned negative during 2026.

The crypto unit earned base fee revenue of $40 million per quarter, which is less than 1% of BlackRock’s total fee revenues of $5.73 billion. The ETFs earned fee revenue of $2.60 billion, active strategies earned $2.40 billion in fees, and the non-ETF index products generated $385 million in fees.

In June, U.S. spot Bitcoin ETFs experienced their largest-ever loss of $4.5 billion, as Bitcoin fell by over 20%. While there were inflows in early July, the daily outflows now stand at $430 million. Bitcoin was trading at $64,756, with an increase of 2% in 24 hours and 49% lower than its all-time high in October 2025 of $126,080.

The decline followed a year when the iShares Bitcoin Trust contributed to Laurence D. Fink’s largest CEO payday. In Q2, iShares passed $6 trillion in assets, about twice its total three years earlier. Actively managed investments garnered a total of $53 billion, with the highest allocation of $7 billion going to the liquid alternatives investment category. Value of technology subscription contracts increased by 15%.

The company’s share repurchase total for the quarter was $450 million. Share repurchase plans were raised to $550 million for the quarter from $400 million. The target for 2026 was set at. Chairman and CEO Laurence D. Fink said, “Clients entrusted us with $192 billion of net inflows.” He also cited 8% organic base-fee growth for the quarter.